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Algorithmic pricing and concerted behaviour – competitive challenges?

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  • Aleksandar B. Todorov

Abstract

The application of advanced pricing algorithms is becoming an increasingly common practice in the real economy. On the one hand, this is associated with improvements in the efficiency of firms, but on the other hand, it may pose a threat to market competition and thus have undesirable consequences for consumers. This article keeps track of the current interdisciplinary discussion on the possibility of pricing algorithms to achieve colluding behaviour. This possibility seems not only theoretically possible but also ever more practically feasible. At the same time, policy instruments are, at least for the moment, limited and pose new challenges to competition authorities.

Suggested Citation

  • Aleksandar B. Todorov, 2022. "Algorithmic pricing and concerted behaviour – competitive challenges?," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 90-107.
    • Handle: RePEc:bas:econth:y:2022:i:1:p:90-107
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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